Mumbai, Jan 12 : Tata Industries Limited on Friday has made an open public offer to the shareholders of the Bangalore-based Tata Advanced Materials Limited (TAML) to acquire the entire remaining shareholding of TAML.According to a Bombay Stock Exchange (BSE) announcement on Friday, the shares, comprising 52,98,884 equity shares of Rs 10 each, will be acquired at a price of Rs 15 per share and will be payable in cash. The company's decision was taken by the Committee of Directors at a meeting held on Friday.The Tata Group and its associates hold 48 per cent in the Bangalore-based company, including the 30 per cent held by Tata Industries. The balance 52 per cent is held by the public.TAML was reported to have requested the Board for Industrial and Financial Reconstruction (BIFR) for submission of the revised rehabilitation plan following non-receipt of orders from aerospace undertakings like the Indian Spece Research Organisation (ISRO) and consequent under-performance.
However, rejecting the requests, the BIFR had directed the operating agency IDBI to issue an advertisement inviting offers for the company's takeover, leasing, amalgamation or merger. Subsequently, Tata Advanced Materials had filed an appeal against the BIFR order before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR).
Following this, the AAIFR, in its hearing, ruled TAML outside the provisions of the Sick Industries Companies Act (SICA) after the company's plan to convert inter-corporate deposits worth Rs 15.80 crore advanced by Tata Industries into equity shares, having a face value of Rs 10 each along with interest waiver approximating Rs 1.45 crore, thus raising Tata group stake in the company to an estimated 83.26 per cent. Added to the reserves, the revised equity base makes the company's networth positive against the earlier situation of having accumulated total losses of Rs 21 crore on a paid-up equity capital of Rs 7.5 crore.
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